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Online Gambling in Denmark favored by EC Rules

The new regulations in Denmark benefits online gambling industry and make the Danish online gambling market accessible.

After a period of debates, the EC has finally set rules in favor of online gambling in Denmark, by dismissing the complaint regarding the gross gaming revenue taxes between 45% and 71%. The licensed casinos will pay only 20% gross revenue taxes.

The new law will produce its effects starting with January 1 2011, when the licenses will become active. They will be issued for online and offline sports betting including fixed, pool, spread and exchanges and also for online casino games like blackjack, roulette, slots, backgammon, whist and bridge. Horse racing and bingo betting belong to Danske Spil, the state owned monopoly.

The ruling is warmly embraced by online operators. Betfair, who militated for online gambling regulation in Europe, will soon apply for a license in Denmark, according to the chief legal and regulatory affairs officer, Martin Cruddace. Cruddace also stated that the regulation in Denmark benefits Denmark’s government, the online gambling operators and the consumers.

The Betsson Group, who has acquired Betsafe, a Danish online gambling operator, is also happy about the regulations. Country manager Denmark Richardt Funch stated that now they will be able to implement the sponsorship agreement with the Danish premiere league, which is to be renamed the Betsafe League. Although the 20% tax is a bit high, it’s something they will have to accept.

Expressing his satisfaction with the new rules, the chief executive of RGA (Remote Gambling Association) pointed out the difference between land based and online casinos and the different markets they cover. Therefore taxation should be set accordingly and this is an example to follow by those jurisdictions that impose higher taxes on online operators.